SBI REVISES FY22 GDP PROJECTION TO 7.9%

WHY IN NEWS ?

• Economic research department of State Bank of India has published the “Ecowrap 2021” report and revised the real GDP projection for Financial Year 2022 to 7.9 percent from 10.4 percent earlier. Report highlights disproportionately larger impact of second wave of Covid-19 pandemic on economy.

About:

• It says, GDP outlook will be impacted by the trajectory of international commodity prices in the current financial year.
• Pass-through impact of higher commodity prices will be visible in domestic prices which will also impact consumption.
• Overall consumption trajectory will depend on recovery in services such as Trade, Transport, hotels, communication & services related to broadcasting, supporting 25 crore households.
• Corporate reported better growth numbers in Q4 of Financial Year 2021. However, the trend might get reversed as per report.
• Nominal loss of ₹4-lakh crore was reported in H1 (April 2020-September 2020) while 7.3 lakh crore reported in H2 (October 2020 – March 2021). Thus, overall annual loss was ₹6.1-lakh crore.